Authorising a Stage or Exception Plan

Overview

It is important that work commences on a stage only when the Project Board says it should; this avoids the problems of projects continuing just because no one thinks to stop them.

To enable this to happen, the project should be broken down into manageable sections (stages) at the end of which the Project Board has to approve whether work is to continue or not.

It is also important to spot problems early and react to them.

Context

This process authorises every stage (except the Initiation Stage) plus any Exception Plans that are raised.

Process Description

The objective of this process is to decide whether to authorise the next stage of work, and hence commit the required resources, based on:

	A view of the current status of the project
	A detailed forecast of the commitment of resources required by, and the products to be created from, the next stage of the project
	A re-assessment of the likely project end date
	A re-assessment of the risk situation
	A re-assessment of the Business Case and the chances of achieving the expected benefits.

The current status of the project is usually presented by the Project Manager covering the results of the last stage compared to expectations.

The detailed forecast comes from the plan for the next stage, for which the Project Manager is seeking approval. The detailed forecast should match the updated or revised Project Plan.

The updated Project Plan and Business Case are compared with what they were at the start of the project (and at the start of the last stage) to check that the project is still viable.

Any changes to the Business Case defined in the Project Directive must be communicated to corporate or programme management.

The process may also be invoked when the stage or project is forecast to exceed its tolerance levels. Early warning of such a situation should have been given to the Project Board via an Exception Report, see Project Controls for a full explanation.

An Exception Report explains the cause of the deviation and the current situation, the options, the Project Manager's recommendation and the impact on the Project Plan, Business Case and Risks.

In the case of a stage being forecast to exceed its tolerances the Project Manager will ask the Project Board to authorise an Exception Plan. As with a Stage Plan, the Exception Plan should be accompanied by an updated Project Plan, Business Case and Risk Log.

If the forecast is for the project to deviate beyond its tolerances, the Project Board must consider its brief and decide if the matter has to be referred upwards. As part of the exception process the Project Board has to secure any necessary decisions from outside the project. For example, if this project is part of a programme the programme support office will have to examine the likely impact on the programme and take appropriate action following approval by the Programme Chairman or Director as necessary.

Once authorised, an Exception Plan becomes the current Stage Plan.

Before authorising a Stage or Exception Plan the Project Board must ensure that changes in the corporate environment, which may impact on the project or its Business Case are brought to the attention of the Project Manager and dealt with effectively.

Responsibilities

The Project Board has full responsibility for the process, based on information provided by the Project Manager.

Information Needs

Management information	Usage	Explanation
Next Stage Plan or Exception Plan	Input	Plan for which the Project Manager is seeking approval
Product Checklist	Input	Summary list of major products to be produced by the plan with key dates
Updated Product Plan	Input	To allow the Project Board to review the whole project status
Updated Business Case	Input	To allow the Project Board to check that the project is still justified
Project Foundation Document	Input	Used to provide a baseline against which to assess the advisability of any deviations
Project Management Team changes (included within Stage Plan)	Input	To allow the Project Board to ratify any appointment changes
Updated Risk Log	Input	Check that the risks are still acceptable
End Stage Report	Input	Report of stage just completed. Helps assessment of current situation. (There would not be one of these for the Initiation Stage)
Authorisation to proceed	Sign off	Authorisation to proceed with the submitted plan. During Project Initiation the Project Board decides how formal or informal it wishes the approval to be. The Project Board, of course, has the authority to reject the plan. It may ask for a re-submission or decide to close the project

Key Criteria

	Was everything expected of the current stage delivered? If not, was this with the approval of the Project Board?
	Are there clear statements about what is to be done about anything not delivered? Is it covered by a Project Issue? Is its delivery included in the Next Stage Plan?
	Is the project still viable and does it remain focused on the same business need?
	Are the risks still acceptable?
	Are the countermeasures still valid, including any contingency plans?
	Does the Project Board want to, and is it able to, commit the resources needed for the next stage of work?
	In projects that have a different Supplier for each stage, is it documented and agreed by all Suppliers that the key project information will be made available to subsequent Suppliers?